Financial planning can be a daunting task. If you haven’t delved into the area of investments, life insurance, or long-term finances, it can be challenging to know where to begin when planning your financial future.
Whether you’re choosing personal planning services or financial planning for professional athletes, there are a few things to consider when choosing your advisor.
Know the Types
There are a few different types of financial advisors, each offering various services to suit your needs. A simple Google search with “financial planning near me” will get you the most relevant results, so you can find the one that suits your needs best.
Fee-Only
Fee-only financial planners charge fees for their services. Fees can be a flat fee or a percentage of your financial assets.
Commission
Planners who earn their income on commission get paid when they sell you specific services.
Registered Advisors
Registered Investment Advisors may or may not charge a fee for their services and cover a wide range of areas.
Robo-Advisors
If you’re looking to make traditional long-term investments, an automated Robo-advisor can help guide you using preconstructed portfolios.
Know Your Budget
Because some planners charge fees, charge rates, or take commissions from your sales, it’s important to research and understand the costs involved before choosing your planner.
Know Your Options
Financial planners offer services in estate planning, debt management, and choosing insurance policies, among other things. When looking at financial planners, check which services they offer or specialize in.
Know Your Goals
Financial planners offer a wide range of services, so you should make a list of the things you would like to plan for. For example, college and retirement are two significant expenses that many people will create a financial plan to save for.
Know Your Planner
Always look into a financial planner’s background before doing business. Ensure they have the necessary credentials and examine how their fees are structured, so there are no surprises in the future.
Whether you hope to have a nest egg when you retire, avoid student loans, or want to make sure your children are cared for, using a financial planner can be an excellent choice for your future. Keep these aspects of the planning process in mind when choosing your planner.